Canadian CANNAINVESTOR Magazine July / August 2018 | Page 122

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The facts you can rely on include:

4 Health Canada has rigorous proper chain of custody regulations in place that when followed with integrity result in no missing inventory. Health Canada regularly reviews and audits for compliance.

4 Audited financial statements of any company are the gold standard of stakeholder confidence. According to accountingtools.com:

The purpose of an audit is for an independent third party to examine the financial statements of an entity. This examination is an objective evaluation of the statements, which results in an audit opinion regarding whether the statements have been presented fairly and in accordance with the applicable financial reporting framework (such as GAAP or IFRS). This opinion greatly enhances the credibility of the financial statements with users, such as lenders, creditors, and investors. (CLICK HERE FOR SOURCE).

4 Fund managers, underwriters, creditors, financial institutions, and others also undertake due diligence reviews.

I believe that organizations such as Health Canada or a professional Accounting firm tasked with audit and attestation perform their due diligence with integrity. The onus is on those that infer otherwise to prove so.

Although an American reference, alleged accounting/financial shenanigans coupled with aggressive accounting techniques

were recently uncovered by those responsible for audit,

attestation, compliance, and enforcement – CLICK HERE to learn how “Sweet Leaf, once one of Colorado’s largest marijuana retailers, is being stripped of all 26 of its retail and cultivation licenses in Denver because of an alleged illegal multimillion-dollar sales scheme”. The term shenanigans may sound childlike innocent, silly and playful yet actually refers to intentional dishonest activity. This is a good article, written by a CFA, on accounting and financial shenanigans (CLICK HERE).